On November 30, 2021 Walgreens Boots Alliance (Nasdaq: WBA) and McKesson Corporation (NYSE: MCK) reported that they have reached an agreement for WBA to acquire the remaining 30% share of their GEHE Pharma Handel (GEHE) and Alliance Healthcare Deutschland (AHD) joint venture (Press release, McKesson, NOV 30, 2021, View Source [SID1234596307]). Following this transaction, WBA will become the 100% owner of the combined GEHE and Alliance Healthcare businesses in Germany.

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GEHE and AHD successfully combined their operations in the German pharmaceutical market on November 1, 2020. In that transaction WBA became the 70% owner of the joint venture with McKesson holding the remaining 30%. Today’s announcement follows McKesson’s announcement in July 2021 of the sale of certain European businesses and its intention to exit the European region fully.

"We are very pleased to have reached agreement with McKesson to take full control of our joint German pharmaceutical wholesaling operations. This new, exciting step enables Walgreens Boots Alliance to further strengthen its position as a leading pharmaceutical wholesaler in Germany," said Ornella Barra, Chief Operating Officer, International, Walgreens Boots Alliance. "We thank McKesson for their partnership in forming and developing our joint venture and look forward to further improving our innovative services to manufacturers and pharmacists in Germany."

Brian Tyler, chief executive officer, McKesson: "The sale of our minority stake in the GEHE-Alliance Healthcare joint venture in Germany is part of our stated intention to exit the European market to reinvest in strategic growth opportunities elsewhere. We believe that WBA is an excellent parent company for the GEHE-Alliance Healthcare businesses in Germany and wish our colleagues all the best under their full ownership."

The transaction is subject to standard regulatory clearance by the relevant local authorities. Financial terms of the transaction have not been disclosed.